Question
During the year end 31 December 2018, Lisbon experienced the following transactions of events: i. Sold an asset to a finance company and leased it
During the year end 31 December 2018, Lisbon experienced the following transactions of events:
i. Sold an asset to a finance company and leased it back for the remainder of its useful life
ii. The company's statement of profit and loss prepared using historical costs showed a loss from operating its shops, but the company is aware that increase in the value of its properties during the period far outweighed the operating loss.
Required
Explain how you would treat the items above in Lisbon's financial statements and indicate which of the Conceptual Framework's qualitative characteristics your treatment is based on (UND:6)
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
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